Virgin Australia Financially Secure? [Now in Voluntary Administration]

[glasszon]

Not being a lawyer and all that, I'd be surprised if any attempts to sue AFF for copyright breach would be considered. Organisations like Daily Mail and a host of others rip off content daily and pass it off as their own, and SFA happens to them. Reposting here is not in that category and the intent is to facilitate discussion. Any attempt to bring AFF to account would be met with subscription cancellations, you'd hope.

I think we are getting off-topic, but generally the issue isn't about who's right or who's wrong, rather it is the legal cost AFF will incur if they are forced to defend the case, so it's best for sites such as AFF to err on the side of caution and avoid the possibility of getting sued.

 

[Happy Dude]

I think we are getting off-topic, but generally the issue isn't about who's right or who's wrong, rather it is the legal cost AFF will incur if they are forced to defend the case, so it's best for sites such as AFF to err on the side of caution and avoid the possibility of getting sued.

Completely agree, other than to add that to cease and desist in response to a request to do so, which would pre-empt any suing, doesn't cost anything. I'd also add that any losses worth pursuing would be hard to justify. But yep prolly best to play it safe......

 

[hydrabyss]

Came across this earlier but the full article is paywalled.

Virgin Australia is currently in the middle of a debt restructuring program, with Houlihan Lokey appointed by the airline for the assignment.

 

[pauly7]

Came across this earlier but the full article is paywalled.

Virgin Australia is currently in the middle of a debt restructuring program, with Houlihan Lokey appointed by the airline for the assignment.

I thought VA denied this was happening a few days ago?

 

[HS-TQE]

I thought VA denied this was happening a few days ago?

The paywalled article just broke the news some moments ago.

 

[Must...Fly!]

Hmm seems the Australian is doubling down on what it printed last week. But can't access the article as I am not a subscriber.

 

[hydrabyss]

Another paywalled article from the Australian with this in it s title.

Virgin has moved fast to restructure its balance sheet with a debt for equity swap in advance stages

 

[Bagpuss]

Came across this earlier but the full article is paywalled.

Virgin Australia is currently in the middle of a debt restructuring program, with Houlihan Lokey appointed by the airline for the assignment.

The take aways: looking into Deed of Company Arrangement or creditor's Scheme of Arrangement.


EDIT links for reference:

What is a Deed of Company Arrangement (DOCA)? | LegalVision

LegalVision Lawyer, Sophie Mao, explains the options available to companies facing insolvency and how a Deed of Company Arrangement (DOCA) can help.

legalvision.com.au

A simple summary of how a scheme of arrangement works under Australian takeovers laws. - Guide | MinterEllison

A simple summary of how a scheme of arrangement works under Australian takeovers laws.

www.minterellison.com

 

[HS-TQE]

Another Paywalled Article: Only quotes I can grab from the 'free' part.

Source: NoCookies | The Australian

Federal Treasurer Josh Frydenberg wants to maintain two airlines in Australia and could set the ball rolling by issuing $1.4 billion in convertible debt to Virgin Australia, convertible at $1, which would decimate shareholders.

The offer would need shareholder and bondholder support but would precipitate the change in ownership necessary to help the airline survive.

 

[deebens]

God there are so many nuffers who respond to those articles at The Australian. Every time there's a Virgin article there's at least 10 people who proclaim "Virgin is owned by...."

Only early days on this one and someone's already done it.

 

[juddles]

I am rapidly coming to a (new) conclusion regarding the OP's central theme (about "is Virgin financial") With each day it becomes clearer that this general lockdown, or slow down, is something that will last for many many months. Essentially even Qantas is being "mothballed' for the foreseeable future.

The debate should no longer be based upon how an airline can survive a few months - it should be about how any airline can completely restart after an extended period of grounding. Given this reality, it is about what airline can manage to cover the costs of sheerly maintaining grounded aircraft and crew and staff for many months, and then restart, VERY slowly, when some sort of opportunity arises.

COVID has literally KILLED many businesses, airlines such as Qantas and Virgin included. Their only chance to eventually reemerge is if they have support from governments. And those governments do not know just how long this thing is going to run for.

I could suggest that the only possibility for airlines in six months is a government service - after the complete death of Qantas and Virgin, etc. And people would laugh. But who here, just a couple of months ago, could have envisioned the current crisis?

 

[oz_mark]

I could suggest that the only possibility for airlines in six months is a government service - after the complete death of Qantas and Virgin, etc. And people would laugh. But who here, just a couple of months ago, could have envisioned the current crisis?

Good chance.

I ponder on what would happen if the government just let Virgin fail. Down the track, what would the do if Qantas then looked like falling over? Realistically, they would have to let it fail as well.

Then what? is an interesting question.

 

[cove]

It isn’t just Virgin and Qantas. It is also most hotel chains that will have a problem too. If you think it out we will have issues with restarting Qantas and Virgin and many hotel brands if they all fail in 2020/21.
Our laws on business restructures are not good and could need to be updated sooner rather than later.

 

[hydrabyss]

Once restrictions are lifted I hope to see domestic tourism boom. We may have lost international tourists but will gain all those who would normally go overseas or on cruises. A number of people will be worse off financially but there will also be a number that will be the same or better off.

The Government is injecting a huge amount of money so if spent on services instead of goods (except locally made of course) this should kick start some employment to get the money moving around again.

 

[Bundy Bear]

Hire car companies but realistically any company that relies on tourism is in deep trouble.
Also surprised how much the government is locking things down, if this is going to last 6 to 12 months will stuff everyones business.

 

[cove]

Yes domestic tourism should go very well. I am thinking about Exmouth, Esperance and Margaret River as places I should go to more often. If we cannot get flights to Exmouth and Esperance it isn’t impossible to drive there. That is quite a bit slower than going on a regional airline but when you get there you would have your own transport.

 

[bcworld]

VA in another trading halt:

https://www.asx.com.au/asxpdf/20200414/pdf/44gxk8qjtq4344.pdf

 

[oz_mark]

VA in another trading halt:

https://www.asx.com.au/asxpdf/20200414/pdf/44gxk8qjtq4344.pdf

Been a busy weekend for them. Wonder what they have come up with.

 

[jb747]

Whilst a boom of domestic tourism is something to hope for, I suspect a few attitudes might have to change. I've obviously travelled a lot, and fairly large parts of Australia, that are otherwise quite tourism dependent, seem to have a basic attitude of "leave your wallet, but otherwise piss off".

 

[Must...Fly!]

Whilst a boom of domestic tourism is something to hope for, I suspect a few attitudes might have to change. I've obviously travelled a lot, and fairly large parts of Australia, that are otherwise quite tourism dependent, seem to have a basic attitude of "leave your wallet, but otherwise piss off".

Agree it will require a shift in mentality from both sides of the fence. But given there is no one else around to provide them business, you'd be hard pressed to see how tourism based businesses don't change their attitudes.

There are a number of places I've not visited in Australia that I will gladly go to when domestic restrictions are relaxed. Not everyone will be as wealthy as before so I would hope costs are reduced a bit.